In this episode of the "Before You Buy or Sell a Business Podcast," host Jared Johnson welcomes Jason Boehning, an HVAC industry professional who has successfully acquired two businesses over a short period.

The discussion delves into the intricacies of acquiring businesses, highlighting Jason's strategic mindset and the unique competitive advantage he enjoys due to his engineering background. This episode offers listeners invaluable insights into the pragmatic approach Jason adopted, which not only involved leveraging his skills but also focusing on relationship-building and effective transition management.

Jason's journey started from a small Texas town and led him to Texas A&M University, where he studied mechanical engineering. His diverse career path in the HVAC industry served as a solid foundation when he made the decisive move to business ownership. Through engaging dialogue, this episode presents a comprehensive look at his process of acquiring and managing HVAC businesses.

Key themes explored include the importance of having a solid plan, the advantages of maintaining good relationships with employees during acquisitions, and the strategic insights driving successful business growth in a competitive market.

• Jason leveraged his HVAC design and engineering knowledge to strategically acquire two businesses, positioning himself effectively in a competitive market.
• Key factors in successful acquisitions include having a solid operational and financial plan and maintaining focus on long-term goals amidst a dynamic business environment.
• The importance of maintaining key employees during a business transition, as these employees often hold valuable customer relationships and operational knowledge.
• Acquiring existing customer bases through business purchases can be a more effective growth strategy than relying on extensive digital marketing efforts.
• Managing working capital efficiently is critical in the HVAC sector due to varying cash flow cycles, especially when dealing with commercial clients.

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If you have questions for Jared, visit https://jaredwjohnson.com/

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

Navigating the intricate world of buying and selling businesses can be challenging. Understanding due diligence, valuations, and the right mindset is crucial.

In this episode of the "Before You Buy or Sell a Business" podcast, host Jared Johnson engages Rosco Graves from Polaxis in a deep dive into the nuances of buying and selling businesses.

They discuss the pertinent steps necessary for a successful business acquisition or sale, including crucial due diligence phases. With Jared’s experience as a lender and Rosco’s corporate and entrepreneurial background, the episode exposes valuable strategies to enhance transaction success rates.

Rosco shares his journey from the high echelons of corporate finance to his role in supporting small and medium-sized business owners. This transition equipped him with practical insights into the diligence, financial modeling, and strategic planning required for business transactions.

Rosco and Jared then explore the importance of conducting a quality of earnings report in determining the true value of a business. They outline how even seemingly small improvements in a business's operation or financial status can significantly affect its sale price and buyer interest.

• Conducting thorough due diligence can prevent costly errors in business transactions.
• A quality of earnings report is crucial for accurately assessing a business’s financial health.
• Sellers should proactively prepare their businesses to attract quality buyers and higher valuations.
• Understanding your personal capabilities in business operations can guide a more successful acquisition.
• Building a reliable team of advisors is essential for navigating the complexities of business transactions.

For more information about Rosco, visit: https://polaxis.co/

This episode of the "Before You Buy or Sell a Business" podcast delivers a wealth of information for prospective buyers and sellers aiming to navigate the market efficiently and effectively. For more in-depth insights and practical advice, don't miss listening to the full episode, and subscribe to our series for more valuable content.

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If you have questions for Jared, visit https://jaredwjohnson.com/

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

"The more parties you get investing in your deal, the less of a chance you're going to buy a bad deal."

In Part 2 of this two-part episode of the Before You Buy or Sell a Business podcast, I talk with SBA loan borrowers about the business they end up buying: an HVAC business.

From initial deal discovery to negotiating terms and finalizing the purchase, this episode provides a thorough examination of each step potential buyers should consider.

This detailed discussion underscores the importance of due diligence and strategic partnership in acquiring a business. Key topics include the evaluation of working capital, understanding the seller's perspective, and leveraging relationships with financial backers like the Search Investment Group.

Pete candidly shares lessons learned, emphasizing the immense value of patience and discipline when analyzing potential acquisitions. Garrett adds depth with his focus on maintaining a conservative approach to financial evaluations, ensuring any deal remains sustainable in long-term.

Key Takeaways:

✅ Involve multiple stakeholders in your deal-making process to avoid poor investments.

✅ Due diligence is crucial in understanding the nuances of potential acquisition, including financial and operational dynamics.

✅ Building relationships with experienced mentors or strategic investors can provide crucial guidance and support.

✅ Negotiating working capital is essential to ensure a smooth transition and stability post-acquisition.

✅ Approach acquisitions with a mindset of adaptability and readiness to tackle operational challenges.

CHAPTERS

0:00 | Introduction

4:52 | Balancing Fairness and Satisfaction in Real Estate Transactions

12:54 | Navigating Working Capital and Cash Flow in Small Businesses

16:17 | The Importance of Due Diligence in Business Acquisitions

17:30 | Deal Structuring Challenges

20:27 | The Importance of Fair Bidding and Building Lender Relationships

23:14 | Building Trust and Navigating Investment Challenges in Business Ventures

27:05 | The Challenges and Rewards of Acquiring and Operating a Business

31:21 | The Adventure of Owning an HVAC Business